Press Release

VIS Assigns Initial Entity Ratings of Magna Processing Industries (Pvt) Limited

Karachi, June 12, 2026: VIS Credit Rating Company Limited (VIS) has assigned an initial entity ratings of Magna Textile Industries (Pvt) Limited at ‘A-/A2’ (Single A Minus/Single A Two). Medium to long term rating of ‘A-’ indicates good credit quality; Protection factors are adequate. Risk factors may vary with possible changes in the economy. Short term rating of 'A2' indicates good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. Outlook on the assigned ratings is ‘Stable’.

MPIL was incorporated in 1993 and is engaged in the weaving and processing of fabric and home textile made ups, primarily for the export market. The manufacturing facility is located in Tehsil Jaranwala, Faisalabad, Punjab. The unit is vertically integrated with weaving, processing and stitching operations. The registered office is in Faisalabad, Punjab.

The assigned ratings reflect the Company’s established presence in the textile sector, supported primarily by export-oriented revenue base. The ratings are further supported by satisfactory liquidity, reflected in a stable current ratio and improved operating cycle. Debt coverage remained sound despite lower profitability mainly due to lower long-term borrowings and finance costs.

Capital structure remained adequate, with low level of gearing, though short-term borrowing fluctuated in line with working capital requirements. However, the ratings are constrained by declining margins, exposure to raw material price volatility due to high import dependence and increasing energy costs. Going forward, the ratings will remain dependent on improvement in margins, maintenance of sound coverages and a low leveraged capital structure along with stable demand in exports.

For further information on this ratings announcement, please contact on 021-35311861-64 or email at info@vis.com.pk.







Applicable Rating Criteria:
Industrial Corporates
https://docs.vis.com.pk/docs/CorporateMethodology.pdf

VIS Issue/Issuer Rating Scale
https://vis.com.pk/docs/VISRatingScales.pdf

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report. VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright June 12, 2026 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.